Average Home Price in Detoit Drops to $11,596 - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

KTrain · 08-20-2009, 08:26 AM

20% down on a 30 year mortgage would give you monthly payments of $51.23.

The only problem is that you have to live in Detroit.

http://mjperry.blogspot.com/2009/08/...-falls-to.html

burn_this_city · 08-20-2009, 08:38 AM

Are you sure its the average price? I can't open the link.

KTrain · 08-20-2009, 08:40 AM

Here's the blog entry for those people who can open it:

Quote:

According to the Michigan Association of Realtors and Detroit Board of Realtors (data here), the average sales price of a Detroit home fell to $11,596 in July (Year-to-Date), a -40% decline from the $19,596 average home price during the same period last year (see chart above). 2009 year-to-date unit sales increased by 17% to 7,373 homes, compared to 6,315 Detroit homes sold last year over the same period. From the $97,850 peak Detroit home price in 2003, prices have fallen by an amazing 88%. With a 20% down payment on a $11,596 average priced home in Detroit, the monthly payments on a 30-year fixed-rate mortgage at 5.25% would be only $51.23.

For the entire state of Michigan, the average YTD home sales price has fallen by -23.65% to $93,648 through July 2009, compared to last year's average price of $122,660 for the same period. The number of homes sold in the state through July (63,176) of this year increased by 9.16% compared to last year (57,877).

4X4 · 08-20-2009, 08:42 AM

This reminds me of that link someone posted of all the abandond buildings in Detroit.

Here it is:

http://www.flickr.com/photos/snweb/sets/302324/

Actually, that link sucks. Someone posted it in a slideshow format.

BlackEleven · 08-20-2009, 08:47 AM

Quote:

Originally Posted by 4X4

This reminds me of that link someone posted of all the abandond buildings in Detroit.

Here it is:

http://www.flickr.com/photos/snweb/sets/302324/

Actually, that link sucks. Someone posted it in a slideshow format.

As a slideshow (to get a slideshow from a flickr set, just add /show/ onto the end of the URL):

http://www.flickr.com/photos/snweb/sets/302324/show/

Azure · 08-20-2009, 08:51 AM

How long are they going to stay that low? Eventually the prices will go up.

You Need a Thneed · 08-20-2009, 08:59 AM

Quote:

Originally Posted by Azure

How long are they going to stay that low? Eventually the prices will go up.

When someone actually wants to live in Detroit.

Old Yeller · 08-20-2009, 09:17 AM

Quote:

Originally Posted by Azure

How long are they going to stay that low? Eventually the prices will go up.

Whenever the big 3 US automakers all get really successful again.

(never)

VladtheImpaler · 08-20-2009, 09:26 AM

Well, at least I know where I am going to retire, if I go broke in the next couple decades...

Jedi Ninja · 08-20-2009, 09:43 AM

It is possible that this average is being brought down by the liquidation of foreclosure homes which are of below average quality.

It would be more interesting to see the price history on homes currently being sold in middle class neighbourhoods.

Doing a search for 3BR, 3bath, newer than 10 yr old homes, 2000+ sqft in Dearborn comes up with the following typical listing:

http://www.realtor.com/realestateand...9874?source=hp

alltherage · 08-20-2009, 09:43 AM

Jeeze... I just looked on realtor.ca at what around $350k would get you... you'd have to be a millionaire here.

$350k gets you a cookie cutter in Silverado here. A lavish mansion in the D.

http://www.realtor.ca/propertyDetail...ertyId=7979635

Sylvanfan · 08-20-2009, 09:47 AM

I guess the hidden thing is what type of back tax/building code violations are you assuming on those $11,000 houses? What is the actual cost if you want to buy one, and how many sawed off shot guns are you going to need to protect yourself.

HOOT · 08-20-2009, 09:52 AM

That just makes you shake your head. I could have bought 5 house in Motortown instead of buying my car. That just doesn't seem right.

I went to Realtor.com and you can buy some property for like $50. The house is usually a mess but you still get some property for build on, if it was ever worth it in 40 years.

Jedi Ninja · 08-20-2009, 09:54 AM

Quote:

Originally Posted by alltherage

Jeeze... I just looked on realtor.ca at what around $350k would get you... you'd have to be a millionaire here.

$350k gets you a cookie cutter in Silverado here. A lavish mansion in the D.

http://www.realtor.ca/propertyDetail...ertyId=7979635

That's not too far off what $350K would have bought you in Calgary prior to the start of the housing boom, around 2002 say.

Esoteric · 08-20-2009, 10:14 AM

Quote:

Originally Posted by alltherage

Jeeze... I just looked on realtor.ca at what around $350k would get you... you'd have to be a millionaire here.

$350k gets you a cookie cutter in Silverado here. A lavish mansion in the D.

http://www.realtor.ca/propertyDetail...ertyId=7979635

And that's in Canadian dollars as well - the house there is in Windsor.

Cowperson · 08-20-2009, 10:27 AM

Try this:

http://homes.point2.com/US/Michigan/...al-Estate.aspx

Cowperson

mykalberta · 08-20-2009, 10:47 AM

May parents looked into Detroit. They have a strange renters policy in Michigan that basically says you if you lose your job, you can live at your place rent free for 6 months and the rentee has to accept it.

The lawyer strongly advised against Michigan unless you are doing it on a pure purchase and wait strategy. There are security companies in Michigan which will check on homes daily for those who have purchased and are just holding. California or Florida was suggested as a safer alternative - 8X the cost, but a much safer environment for rental income.

old-fart · 08-20-2009, 10:49 AM

Jeez... I might be able to buy Detroit. Just what I always wanted, my own city. A crappy city granted, but a city.

Cowperson · 08-20-2009, 11:05 AM

What strikes me is value versus tax bill . . . . . in one case, taken at random, a selling price of $52,000 for a 1900 sq. foot home with a tax bill of $7787 or 14.5% of the value of the home.

That's a government not giving up it's tax revenue easily but probably driving potential buyers away.

I'd agree that somewhere sunny like Florida and Arizona is where you have some great deals.

However, there was an article in the LA TImes a few weeks ago, I think, indicating that there is a mad stampede going on for foreclosure's and lower valued homes right now in Arizona. A snooze and you lose scenario.

At some point, this is all going to turn very abruptly in the more attractive locations. There is buckets and buckets of money sitting on the sidelines right now earning next to nothing.

Cowperson

mykalberta · 08-20-2009, 11:11 AM

In California outside of San Jose you could get fantastic suburb housing for 50-85k. My parents and a few others went in on purchasing a group of homes in the same subdivision. They take turns vacationing there for a month or so to look after the property(s). They were able to get fantastic financing for these homes that just sit empty.

They all have an agreement that once the investment doubles, they will sell. Also alot of counties in California have a 70% deferable tax policy for homes that are sitting empty.

I wish I had that kind of cash. Gots to love older folks who didnt trust the stock market and kept there money in GICs and Canada Savings bonds

FYI, dont own the investment homes as a person, create a corp for tax deferrals.